FranchiseVerdict
DAYBASE logo
FV-00711·AVOIDStandard71FDD 2022

Daybase

OtherFranchising since 2021Website
Investment
$1.3M – $1.7M
93rd pct Other
Avg revenue
50th pct Other
Royalty
7.0%
33rd pct Other
Units
0
0th pct Other
SBA default

Bottom line

  • Total investment $1.3M – $1.7M including a $50K franchise fee, 7.0% ongoing royalty.
  • No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
  • Rated AVOID with a risk score of 79/100.
  • No Item 19 financial performance representation. Without franchisor-disclosed revenue data, you'll need to gather unit economics directly from existing franchisees.

Item 1 · who you're contracting with

The Franchisor

Legal entity
Daybase Franchising, LLC
Parent company
Daybase, Inc.
Incorporated in
Delaware
HQ
335 Madison Avenue, 3rd Floor, New York, New York 10017
Auditor
Citrin Cooperman & Company, LLP
Audited financials
Franchisor revenue
$0
Most recent fiscal year

Yale framework · single-unit ROIC

Returns Analysis

Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.

The model · Yale framework

What would one DAYBASE unit return on the cash you put in?

Revenue · per unit, per year
$
Item 19 not disclosed — typing your own estimate
Franchisor take · royalty + ad fund
Royaltytyp 68%
%
Ad fundtyp 35%
%
Operating costs · category default: generic
COGS
%
Labor
%
Rent / occupancy
%
Other operating
%
Total invested capital · what you actually put in
Initial investment
$
FDD Item 7: $1.3M–$1.7M
Working capital
$
FDD reports $105K–$110K

Unlevered ROIC · per unit

6%

Below typical band (30–60%)

0%30–60% Yale band80%

Store EBITDA · annual
$98K
EBITDA margin
13.0%
Total invested
$1.6M
Payback
196 mo
Unit-level only. A multi-unit portfolio gives up roughly 5–15% of this to shared services (corporate G&A) before reaching the ~10-unit break-even Yale describes.

Overview

About

DAYBASE franchisees appear to operate flexible workspace or coworking facilities (referenced as 'Workspot'). Day-to-day operations likely include member onboarding, facility management, maintenance, billing administration, and community programming, though the exact service model is unclear from available disclosure.

CEO
Joel Steinhaus
Founded
2021
FDD year
2022
States available
0

Item 7 · what it costs

The Vitals

Total investment
$1.3M – $1.7M
All-in to open one unit
Liquid capital
$105K – $110K
Cash you must have on hand
Franchise fee
$50K
Royalty
7.0%
Percentage of Gross Revenue · typical 6–8%
Ad fund
3.0%
typical 3–5%
Total fee load
10.0%
vs 9–13% typical

Item 19

Financial Performance

This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.

Item 20 · unit dynamics

The Growth Chart

Total units
0
Opened
0
Last reporting year
Closed
0
Company-owned
0
Corporate units in the system
Multi-unit owners
5.0%
2020
0±0
Franchised units
2021
0
Franchised units
2022
0
Franchised units

Year-over-year franchised unit counts and net change. Source: FDD Item 20.

Item 20 · 4 states with active franchisees

The Territory Map

Derived from franchisee contact records. Shows states with at least one current operator — not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).

AK
ME
VT
NH
MA
RI
CT
NY
NJ
PA
DE
MD
DC
WA
OR
CA
NV
ID
MT
WY
UT
CO
AZ
NM
ND
SD
NE
KS
OK
TX
MN
IA
MO
AR
LA
WI
IL
MS
TN
MI
IN
KY
AL
OH
WV
GA
VA
NC
SC
FL
HI
Registered · 4 states
Not registered

States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.

Government records

SBA Loan Data

Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.

No SBA loan data available for this brand.

FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17

Risk & Legal

79
Risk · 0-100
AVOID79 / 100

DAYBASE presents extreme risk: zero operating franchises, going concern status, undisclosed financials, and a $1.7M+ investment in an unproven model with no comparable unit performance data.

Score breakdown · what drove the 79 / 100 rating

  1. 01HIGHGoing Concern status indicates financial instability or viability questions at franchisor level
  2. 02MINORZero existing franchise units suggests brand has never successfully scaled or is in early/failed launch phase
  3. 03MEDNo average revenue or net income disclosure (missing Item 19) prevents ROI validation and suggests poor unit economics
  4. 04MINORHigh initial investment ($1.25M-$1.7M) with unproven profitability model creates severe financial risk
  5. 05MINORRoyalty structure tied to 'Workspot's Gross Revenue' is non-standard and suggests unclear or dependent business model
  6. 06MEDNo disclosed unit growth history raises questions about market viability and franchisee retention
  7. 07MINOR10-year term locks franchisee into unproven concept with no performance track record

Severity inferred from the FDD text · not a regulatory classification

FDD Items 5, 6, 12, 17 · continued from Risk & Legal

Contract & Territory Detail

Territory
Geographical Area of Protection
Protected territory
Yes
Initial term
10 years
Renewal term
10 years
Online sales rights
Restricted
Franchisor can compete
Yes
Hire a manager?
Allowed
Litigation count
0
Right of first refusal
Yes
Franchisor can buy back on resale
Mandatory arbitration
Yes
Jury trial waiver
Yes
Non-compete
2 yrs
Post-termination restriction
Owner-operator
Required
Governing law
New York

Item 11

Training & Operations

Classroom training
32 hrs
On-the-job training
0 hrs
POS system
DBTech
Operating tech stack

Item 20

Franchisee Contacts

Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.

Franchisee contacts

7 numbers

Locked
(213) 576-••••
Suite
CA
(415) 972-••••
One Sansome Street, Suite
CA
(518) 473-••••
NY

One-time purchase · CSV download · Validation questions included

FDD download

DAYBASE · FDD (2022) PDF

Single-page checkout · instant download · CSV export of contacts available separately above